As the global trade and financial system enters an era of rising uncertainty, it is critical that firms understand the complexity of the supply chains they depend on to navigate this change. RSM has undertaken a project to both define and measure that complexity to better understand how it has evolved ... READ MORE >
supply chains
The impact of tariffs: Balancing costs, supply chain and profitability
Raising tariffs can drive up consumer prices, lower demand and hurt business profitability. Unless market forces are considered when employing tariffs, these negatives may occur without also achieving the desired benefit of a shift from foreign to domestic production. As tariffs rise, imported goods ... READ MORE >
Morning market minute: Tariffs, supply chain pressures and inflation
One week from today, President-elect Donald Trump will be inaugurated, bringing a new round of import taxes on a series of goods across several economies. While the details are still unclear, it is not too early to begin estimating the deadweight that a new round of tariffs will place on economic ... READ MORE >
U.S. port strike will have a modest impact on GDP
The strike by port workers along the East and Gulf coasts of the United States will provide a modest hit to GDP of a little more than 0.1 percentage points per week, or roughly $4.3 billion in lost exports and imports. If sustained, that impact would result in roughly a half percentage point shaved ... READ MORE >
Regime change: Businesses face higher costs in nominal and real terms
Higher-for-longer now applies to more than just the federal funds policy rate. It means a regime change for companies of all sizes when it comes to the cost of financing expansion or funding their operations. Whether it be high single-digit borrowing costs for large multinationals or double-digit ... READ MORE >
Back-to-normal supply chain fuels disinflation tailwind
Supply chains in the United States continued to recover in December, remaining at the pre-COVID level for the sixth straight month as most of the damage from the pandemic has now faded, according to the RSM US Supply Chain Index. The recovery in supply chains has been one of the most important factors ... READ MORE >
Globalized manufacturing enters a new era
The era of globalization which brought cheap goods, low inflation, rapid growth and inexpensive capital is transitioning to a new state. Globalization is not dead, but the makeup of its participants has shifted and the rules of global trade continue to be rewritten as businesses diversify where they ... READ MORE >
RSM US Supply Chain Index back to normal for second straight month
The RSM US Supply Chain Index improved to 0.19 standard deviations above neutral in August as inventories and industrial capacity utilization continued to rebound. That marked the second month in a row of supply chain efficiency after nearly three years of being underwater. While it remains too early ... READ MORE >
Earnings call roundup: Space companies
Even as space and intelligence companies grappled with a tight labor market and inflation in the second quarter, they still capitalized on vertical integration efforts and successful launch test phases to remain competitive, according to recent earnings calls. Executives said they were seeking to ... READ MORE >
Preparing for a tsunami of imported goods
The recent reopening of China’s factory floors and the easing of its supply chain bottlenecks have prompted discussion about the ability of the U.S. supply chain to absorb what will be a tsunami of imported goods. With the value of the dollar rising, which lowers the cost of imported goods, demand for ... READ MORE >